TECHNICAL VIEW FOR SENSEX & NIFTY FOR THE WEEK STARTING FROM 19-12-2011
Both indices continued to drift lower and in fact it was a real panic selling which was seen on Friday as both SENSEX and NIFTY hit 28 Month lows.
Technically a close below 4700 for NIFTY and below 15700 for SENSEX is a very bad sign as now on the charts it looks to be a BREAK DOWN although we have to give the Double Bottom probability as if in next one or two days NIFTY again closes back above 4700 there will be some hope.
This view is for Daily Charts but as on Friday the Weekly Chart structure shows no HOPE at all.
Our targets of 4538-4350 for NIFTY and 14900-14600 for SENSEX are now very much on the cards.
Markets can plunge much more than these levels in the current bearish scenario but as we all know CORRECTIONS are always there and as yet we have not seen any SIGNIFICANT correction on MONTHLY BASIS and looking at certain Fibonacci ratios present at 4538/4350 and , we feel a larger corrective rally should begin from the above ZONE OF LEVELS.
We will come out with LEVELS to watch for confirmation of such a rally in due course.
Our first important target for 2011 has been 15000 SENSEX which was presented using various technical tools in January 2011.
Looking at the severe selling pressure seen in the crash of last Friday, it seems that now we are entering a PANIC stage of this 13 month long BEAR MARKET.
The price zone of 4538/4350 for NIFTY and for SENSEX seems a good support zone and the most noticeable fact is that ALL market participants are now turning to be BEARISH Indian markets at this juncture JUST before we are about to reach our year long down side targets.
NIFTY FUT MADE A LOW OF 4538 AND TODAY IT TOUCHED 5149.
2 comments:
EXIT on rallies will be our advice for BSE METAL in 2012.
Wht does it mean?
i will look at the strength of rally and update further.
but try and understand that in worst circumstances i suggested a rally.
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